Geithner Extends Date to Raise Debt Ceiling
The Wall Street Journal
By Jeffrey Sparshott and
WASHINGTON—Citing better-than-expected tax receipts, the U.S. Treasury Department on Wednesday extended its estimate of when the country hits the debt ceiling to somewhere between April 5 to May 31.
The new deadline came as part of the Treasury's quarterly refinancing announcement. Treasury Secretary Timothy Geithner on Jan. 6 told lawmakers the U.S. could reach the congressionally imposed debt limit of nearly $14.3 trillion as early as March 31 and probably no later than May 16.
The new dates range from April 5 to May 31, with the possibility of extending that by up to eight weeks if the Treasury takes additional, extraordinary measures.
Failure to raise the debt limit would precipitate a default by the U.S. and have catastrophic economic consequences, Mr. Geithner said. But Republicans are first demanding spending cuts as they look to trim borrowing and reduce the budget deficit.